A Loehmann's store on State Street in Chicago. (Phil Velasquez/Chicago Tribune)

Loehmann’s said it is exploring a pre-negotiated bankruptcy reorganization, among other options, after defaulting on a loan.

The off-price women’s clothing retailer failed to consummate an exchange of a series of old notes for a series of new notes, the retailer said in a press release Friday. The company received valid tenders representing 92.4 percent of the outstanding principal amount of the old notes, less than the 97 percent required.

As a result, Loehmann’s missed an October interest payment, resulting in default on its revolving credit agreement with Crystal Financial LLC. Get the full story »